Land Sale S-Corp

[devon-vereen42-g]

My family has an S-Corp with 30 acres of Land with a tax value of $300,000 and we sold 1.5 acres of land for $15,000 or the tax value. The overall value is the same and no money is being distributed to shareholders. Where on form 1120 should this sale be entered? 

[Anonymous_]

Are you using TurboTax Business? If so start in the section shown in the screenshot below.

[devon-vereen42-g]

Unfortunately not, however I do have turbotax Premier.  The 1120-S Form I'm using is a printout from the IRS website.

[Anonymous_ · Accepted solution]

TurboTax Premier will be of zero utility in terms of preparing an 1120-S for the S corporation.

Just for this one transaction, you will need Form 1120-S, Schedule D, Form 8949, and Schedule K-1 (at a bare minimum).

[ThomasM125]

You will need TurboTax Business product to prepare your corporate tax return, here is a link you can use to purchase it and do a download:  TurboTax Business

[devon-vereen42-g]

Thanks so much! We are not reporting a gain or loss and we are not issuing any money or a dividend to shareholders. We sold for the tax value. We swapped land for cash when you add the two together the value is the same.

[DaveF1006]

In your Turbo Tax Business return, you will select that you need to report an S-Corp return. Then go to federal taxes>income>investment income >capital gains and losses to properly report the sale of this land. 

If this is the only S-Corp income to report, I would suggest not reporting this if it didn't result in a gain or loss because these types of transactions are not reportable income you need to report.

[Anonymous_]

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@devon-vereen42-g wrote:

We sold for the tax value. We swapped land for cash when you add the two together the value is the same.

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The IRS has no way of knowing your basis (tax value or whatever) for this transaction unless you report it.